Second Quarter Report 2017
SECOND QUARTER REPORT 2017
All amounts expressed in U.S. dollars unless otherwise indicated
Barrick Reports Second Quarter 2017 Results
• Barrick reported second quarter net earnings attributable to equity holders (“net earnings”)
of $ 1.084 billion ($0. 93 per share), and adjusted net earnings 1 of $ 261 million ($0. 22 per
share).
• The Company reported second quarter revenues of $ 2.160 billion, net cash provided by
operating activities (“operating cash flow”) of $448 million, and free cash flow2 of $43 million.
• Gold production in the second quarter was 1.432 million ounces, at a cost of sales applicable to
gold3 of $726 per ounce, and all-in sustaining costs4 of $710 per ounce.
• Total debt was reduced by $309 million in the second quarter.
• We continue to expect full-year gold production of 5.3-5.6 million ounces, at a cost of sales3 of
$780-$820 per ounce, and all-in sustaining costs4 of $720-$770 per ounce.
• Normal leaching operations, including the addition of cyanide, have resumed at the Veladero
mine in Argentina , following the anticipated ramp up and testing of upgraded leach pad
systems.
• We completed the formation of our strategic partnership with Shandong Gold , a landmark
agreement with the potential to create fundamental long -term value for our respective
owners, as well as our community and government partners in Argentina.
• Barrick will begin discussions with the Government of Tanzania next week concerning the
concentrate export ban and other issues impacting Acacia Mining plc’s operations in the
country.
TORONTO, July 26 , 201 7 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the
“Company”) today reported second quarter results for the period ending June 30, 2017.
Our portfolio delivered higher gold production and a 10 percent decrease in direct mining costs
compared to the prior-year period, resulting in lower cost of sales and all-in sustaining costs for the
second quarter. A number of factors contributed to lower cash flow over the same period , including
higher cash taxes paid, an increase in working capital, and a planned increase in capital expenditures
focused on sustaining and growing the value of our operations over the long term . We expect higher
cash flow in the second half of the year as a number of these factors abate.
Reflecting our drive to maximize the productivity and efficiency of our operations, w e have
completed the unification of our Co rtez and Goldstrike operations , and we are accelerating the
implementation of our digital transformation in Nevada , which will support unit cost improvements,
increased throughput , and expanding m argins. During the quarter we continued to optimize our
portfolio for long -term value creation, complet ing the formation of a strategic partnership with
BARRICK SECOND QUARTER 2017 2 PRESS RELEASE
Shandong that has the potential to unlock the untapped mineral wealth of the El Indio Belt —a highly
prospective district on the border of Argentina and Chile that is home to the Veladero mine, Pascua-
Lama, Alturas, and other projects.
By applying strict capital discipline , leveraging innovation and digital technologies, and building
distinctive partnerships, we are positioning Barrick to grow free cash flow per share over the long
term. We continue to advance a deep organic project pipeline that provides our owners with
exceptional leverage to gold prices, built on a foundation of core mines that are among the longest -
life, lowest-cost gold operations in the industry.
FINANCIAL HIGHLIGHTS
Second quarter net earnings were $ 1.084 billion ($0.93 per share), compared to $ 138 million ($0.12
per share) in the prior-year period. This significant increase in net earnings was primarily due to
$882 million in gains related to the sale of a 50 percent interest in the Veladero mine, and the sale of
a 25 percent interest in the Cerro Casale project.
Adjusted net earnings1 for the second quarter were $261 million ($0.22 per share), compared to $158
million ($0. 14 per share) in the prior -year period. Higher adjusted net earnings were primarily the
result of a 10 percent decrease in direct mining costs, driven by lower costs at Barrick Nevada and
Pueblo Viejo, higher sales from our low-cost operations at Barrick Nevada, and lower relative sales
from Acacia and Turquoise Ridge compared to the prior -year period. Higher gold and copper sales
volume s and higher copper prices also contributed to stronger adjusted net earnings. This was
partially offset by an increase in tax expense, higher depreciation, and an increase in exploration and
evaluation costs.
Significant adjusting items (pre-tax and non-controlling interest effects) in the second quarter of 2017
include:
• $689 million in a gain relating to the sale of a 50 percent interest in the Veladero mine;
• $193 million in a gain relating to the sale of a 25 percent interest in the Cerro Casale project ;
partially offset by
• $32 million in foreign currency translation losses primarily related to the d evaluation of the
Argentine Peso on VAT receivables; and
• $26 million in losses on debt extinguishment.
Refer to page 48 of Barrick’s second quarter MD&A for a full list of reconciling items between net
earnings and adjusted net earnings for the current and prior-year periods.
Operating cash flow was $448 million, compared to $527 million in the second quarter of 2016. Lower
operating cash flow was primarily due to higher cash taxes paid at Pueblo Viejo . During the quarter
we made our final 2016 tax payment in the Dominican Republic , in addition to our first tax payment
for 2017. Based on our current estimates, this should result in nominal tax payments at Pueblo Viejo
for the remainder of the year. Operating cash flow was further impacted by the concentrate export
ban affecting Acacia ’s operations in Tanzania , an increase in working capital primarily related to
leach pad inventories at Veladero , and an increase in exploration, evaluation , and project costs.
These decreases were partially offset by hig her gold and copper sales volumes and higher copper
prices, combined with lower direct mining costs, as described above.
BARRICK SECOND QUARTER 2017 3 PRESS RELEASE
Free cash flow 2 for the second quarter was $ 43 million, compared to $ 274 million in the second
quarter of 2016. The decrease primarily reflects higher capital expenditures , combined with lower
operating cash flows. On a cash basis, capital expenditures for the second quarter were $405 million,
compared to $253 million in the second quarter of 2016. This primarily reflects a planned increase in
minesite sustaining capital expenditures at Barrick Nevada , relating to higher capitalized stripping
costs and the timing of minesite sustaining projects in the current period, as well as greater spending
at Veladero relating to phase 4B an d 5B of the leach pad expansion and equipment pu rchases. The
increase in capital expenditures also includes a $31 million increase in project capital , primarily
at Barrick Nevada. This includes the Robertson property acquisition, development of Crossroads and
the Cortez Hills Lower Zone, and the Goldrush project, partially offset by a decrease in pre -
production stripping at the Arturo pit, which entered commerc ial production in August 2016. These
increases reflect high -confidence investments in our most attractive opportunities to sustain a nd
grow the value of our operations over the long term.
RESTORING A STRONG BALANCE SHEET
Achieving and maintaining a strong balance sheet remains a top priority. We intend to reduce our
total debt from $7.9 billion at the start of 2017, to $5 billion by the end of 2018—at least half of which
we are targeting this year. We will achieve this by using cash flow from operations, further portfolio
optimization, and the creation of new joint ventures and partnerships. We will continue to pursue
debt reduction with discipline, taking only those actions that make sense for the business, on terms
we consider favorable to our shareholders.
We reduced our total debt by $ 309 million in the second quarter, or a total of $487 million year to
date. On June 30, the Company completed the sale of a 50 percent interest in the Veladero mine in
Argentina to Shandong for $960 million, which will be allocated to debt reduction.
At the end of the second quarter, Barrick had a consolidat ed cash balance of approximately $2. 9
billion.5 The Company has less than $ 200 million6 in debt due before 2020. About $5 billion, or two-
thirds of our outstanding total debt of $7.4 billion, does not mature until after 2032.
OPERATING HIGHLIGHTS AND OUTLOOK
Barrick produced 1. 432 million ounces of gold in the second quarter at a cost of sales 3 of $726 per
ounce. This compares to 1.340 million ounces at a cost of sales 3 of $836 per ounce in the prior-year
period. After removing non-controlling interests, cost of sales declined by 13 percent on a per-ounce
basis compared to the second quarter of 2016 , primarily driven by a 10 percent reduction in direct
mining costs, and higher ounces sold.
All-in sustaining costs 4 in the second quarter were $710 per ounce, compared to $782 per ounce in
the second quarter of 2016. A nine percent reduction in all-in sustaining costs was primarily driven by
lower cost of sales per ounce , combined with lower general and administrative expenses, partially
offset by an increase in minesite sustaining capital expenditures. Cash costs3 also decreased by 18
percent, from $ 578 per ounce in the second quarter of 2016 , to $ 474 per ounce in the second
quarter of 2017.
BARRICK SECOND QUARTER 2017 4 PRESS RELEASE
We continue to expect full-year gold production of 5.3-5.6 million ounces, at a cost of sales3 of $780-
$820 per ounce , and all-in sustaining costs 4 of $720 -$770 per ounce . This does not include any
revisions to Acacia’s annual output as a result of the export ban on concentrates currently impacting
Acacia’s operations (see “Tanzania Concentrate Export Ban Update” on page 5 for additional details).
We expect production for the remainder of the year to be weighted towards the fourth quarter .
Based on sales mix and our current expectations for the timing of capital expenditures , we expect
costs to be higher in the third quarter.
The Company produced 104 million pounds of copper in the second quarter, at a cost of s ales3 of
$1.85 per pound, and all-in sustaining costs7 of $2.38 per pound. This compares to 103 million pounds,
at a cost of sales 3 of $1.43 per pound, and all-in sustaining costs 7 of $2.14 per pound in the second
quarter of 2016.
Cost of sales applicable to copper increased by 2 8 percent compared to the prior -year period ,
primarily due to higher depreciation expense, and higher power and processing costs at Lumwana .
Copper all -in sustaining costs, adjusted to include our proportionate share of equ ity method
investments at Zaldívar and Jabal Sayid, were 10 percent higher in the second quarter. This primarily
reflects the higher cost of sales applicable to copper combined with higher minesite sustaining capital
expenditures at Jabal Sayid, which only began incurring sustaining capital expenditures upon
entering commercial production in July 2016, as well as higher capitalized stripping at Lumwana.
We continue to expect full -year copper production of 400-450 million pounds, at a c ost of sales 3 of
$1.50-$1.70 per pound, and all-in sustaining costs7 of $2.10-$2.40 per pound.
As part of our ongoing efforts to increase transparency and strengthen our disclosures, we intend to
pre-release production and sales figures ahead of our quarterly earnings releases, beginning in the
third quarter of 2017.
Please see page 32 of Barrick’s second quarter MD&A for individual operating segment performance
details. Detailed mine site guidance information can be found in Appendix 1 of this press release.
Gold
Second Quarter
2017
Current
2017 Guidance
Original
2017 Guidance
Production8 (000s of ounces) 1,432 5,300-5,600 5,600-5,900
Cost of sales applicable to gold3 ($ per ounce) 726 780-820 780-820
All-in sustaining costs4 ($ per ounce) 710 720-770 720-770
Copper
Production8 (millions of pounds) 104 400-450 400-450
Cost of sales applicable to copper3 ($ per pound) 1.85 1.50-1.70 1.50-1.70
All-in sustaining costs7 ($ per pound) 2.38 2.10-2.40 2.10-2.40
Total Attributable Capital Expenditures9 ($ millions) 393 1,300-1,500 1,300-1,500
BARRICK SECOND QUARTER 2017 5 PRESS RELEASE
Veladero Operational Update
On June 15, San Juan p rovincial government and judicial authorities lifted operating restrictions that
had been imposed at the Veladero heap leach facility in March 2017. Following the lifting of
restrictions, Veladero completed a gradual ramp -up of the mine’s upgraded leach pa d systems,
testing the safety and integrity of the new infrastructure. Normal leaching operations at Veladero ,
including the addition of new cyanide to the heap leach circuit, resumed in mid-July.
On a 100 percent basis, we continue to expect full -year production at Veladero of 630,000 -730,000
ounces of gold, at a cost of sales 3 of $740-$790 per ounce, and all-in sustaining costs4 of $890-$990
per ounce. Barrick’s share of full -year production, reflecting 50 percent ownership from July 1, is
expected to be 430,000-480,000 ounces of gold.
Tanzania Concentrate Export Ban Update
Barrick holds a 63.9 percent equity interest in Acacia Mining plc, a publicly traded company listed on
the London Stock Exchange that is operated independently of Barrick. At this time, Acacia continues
to evaluate the impact of Tanzania’s concentrate export ban, as well as recently enacted legislation,
on its 2017 production guidance. Acacia has not revised its full -year production guidance to reflect
any change to annual output as a result of the concentrate export ban currently in place , but has
stated that it is now targeting the lower end of its guidance range. Acacia has also indicated that,
given the rate of cash outflow, it does not believe continued operations are sustainable at its
Bulyanhulu mine beyond September 30. Barrick continues to monitor the situation, and should Acacia
revise its full -year outlook, Barrick will evaluate the impact to its own guidance at that time . Any
impact will depend, in large part, on the duration of the concentrate export ban. Acacia operations
impacted by the current ban on concentrate exports (Bulyanhulu and Buzwagi) account for
approximately six per cent of Barrick’s 2017 gold production g uidance. In total, Acacia accounts for
approximately 10 percent of Barrick’s 2017 gold production guidance.
In an effort to seek a resolution that is in the best interests of all parties, including the Government of
Tanzania, Barrick, and Acacia, Barrick will begin direct discussions with the Government of Tanzania
concerning the concentrate export ban and other issues next week. Barrick is doing so in its capacity
as Acacia’s largest shareholder . Acacia is not participating directly in the discussions at this stage ,
however it intends to work with Barrick as necessary to support the process. Any potential resolution
arising from these discussions will be subject to approval by Acacia.
STRATEGIC COOPERATION AGREEMENT WITH SHANDONG
On June 30, we completed the formation of our strategic partnership with Shandong. The sale of a
50 percent interest in the Veladero mine in San Juan province, Argentina to Shandong Gold Mining
Co., Ltd, for $960 million was the first of three steps outlined in a strategic cooperation agreement
signed by Barrick and Shandong G old Group Co., Ltd. on April 6 . In keeping with the second step in
the agreement, the two companies have also formed a working group to explore the joint
development of the Pascua -Lama d eposit. As a third step, Barrick and Shandong will evaluate
additional investment opportunities on the highly prospective El Indio Gold Belt on the border of
Argentina and Chile, home to Pascua-Lama, Alturas, and other projects.
Following the closing of the transaction, senior Shandong leaders traveled to Argentina to kick off
the new partnership, participating in town hall meetings and welcome ceremonies with employees at
the Veladero mine and San Juan offices. The delegation also met with San Juan Gover nor Sergio
BARRICK SECOND QUARTER 2017 6 PRESS RELEASE
Uñac, San Juan Mining Minister Alberto Hensel, and other provincial and federal government officials.
Our first joint venture planning and integration meeting was held on July 11.
PORTFOLIO OPTIMIZATION
Cerro Casale Joint Venture
On June 9, Barrick completed the sale of a 25 percent interest in the Cerro Casale project in Chile to
Goldcorp Inc. , resulting in the formation of a new 50/50 joint venture to manage the project.
Following the completion of Goldcorp’s acquisition of Exeter Resource Corporation, the Joint Venture
will control more than 20,000 hectares of land in the Maricunga District, including the Caspiche and
Cerro Casale deposits.
Robertson Property Acquisition
On June 8, Barrick completed the acquisition of the Robertson property and other claims in Nevada
from Coral Gold Resources. The Robertson property is adjacent to Cortez, located just six kilometers
north of the Pipeline mill. If successfully brought into production, ore from the project would provide
an additional feed for the Cortez mill , with the potential to extend open pit operations in the Cortez
District. Robertson also has processing synergies with the Deep South underground expansion
project at Cortez. In addition, the land package contains a number of promising near-mine exploration
opportunities, as well potential new exploration targets in this highly prospective and prolific district.
ALTURAS PROJECT UPDATE
The Alturas project, located on the border between Argentina and Chile on the El Indio Belt, is a
Barrick greenfield discovery with 6.8 million ounces of inferred gold resources (21 1 million tonnes,
grading 1.0 grams per tonne) as of December 31, 2016. 10 We have completed a scoping study for a
conventional open pit heap leach operation at Alturas. We believe we can add more value by applying
innovative new mining and processing solutions to the project , and through additional reverse
circulation (RC) drilling. We are now carrying out further studies to evaluate the feasibility of these
potential enhancements. Establishing a more accurate grade model using RC drilling will be one of
our objectives for the next drilling season. Our Investment Committee will continue to scrutinize the
project as it advances, applying a high degree of consistency and rigor —as we do for all capital
allocation decisions at the Company—before further review by Barrick’s Executive Committee and
our Board of Directors at each stage of advancement.
TECHNICAL INFORMATION
The scientific and technical information contained in this press re lease has been reviewed and
approved by Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick, Rick Sims, Registered
Member SME, Senior Director, Resources and Reserves of Barrick, and Patrick Garretson, Registered
Member SME, Senior Director, L ife of Mine Planning of Barrick, each a “Qualified Person” as defined
in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
BARRICK SECOND QUARTER 2017 7 PRESS RELEASE
APPENDIX 1 —2017 Updated Operating and Capital Expenditure Guidance
GOLD PRODUCTION AND COSTS
Production
(millions of ounces)
Cost of sales3
($ per ounce)
All-in
sustaining costs4
($ per ounce)
Cash costs4
($ per ounce)
Barrick Nevada 2.270-2.350 790-830 630-680 440-480
Pueblo Viejo (60%) 0.625-0.650 650-680 540-570 420-440
Veladero (50%) 0.430-0.480 740-790 890-990 550-590
Lagunas Norte 0.380-0.420 660-730 490-550 430-470
Sub-total 3.700-3.900 750-790 650-700 450-480
Acacia (63.9%) 0.545-0.575 860-910 880-920 580-620
KCGM (50%) 0.375-0.425 680-770 665-715 585-635
Turquoise Ridge (75%) 0.230-0.250 700-750 750-830 570-600
Porgera (47.5%) 0.240-0.260 780-840 900-970 650-700
Hemlo 0.205-0.220 880-940 940-1,040 720-770
Golden Sunlight 0.035-0.050 1,200-1,500 1,200-1,300 1,100-1,200
Total Gold 5.300-5.60011 780-820 720-770 510-535
COPPER PRODUCTION AND COSTS
Production
(millions of pounds)
Cost of sales3
($ per pound)
All-in
sustaining costs7
($ per pound)
C1 cash costs7
($ per pound)
Zaldívar (50%) 120-135 2.00-2.20 1.90-2.10 ~1.50
Lumwana 250-275 1.20-1.40 2.10-2.30 1.40-1.60
Jabal Sayid (50%) 35-45 2.10-2.80 2.10-2.60 1.50-1.90
Total Copper 400-45011 1.50-1.70 2.10-2.40 1.40-1.60
CAPITAL EXPENDITURES
($ millions)
Mine site sustaining 1,050-1,200
Project 250-300
Total Attributable
Capital Expenditures9
1,300-1,500
BARRICK SECOND QUARTER 2017 8 PRESS RELEASE
APPENDIX 2 — 2017 Outlook Assumptions and Economic Sensitivity Analysis
2017 Guidance
Assumption
Hypothetical
Change
Impact on
Revenue
(millions)
Impact on
Cost of sales3
(millions)
Impact on
All-in sustaining
costs4,7
Gold revenue, net of royalties $1,050/oz +/- $100/oz +/- $271 +/- $8 +/- $3/oz
Copper revenue, net of royalties12 $2.25/lb + $0.50/lb + $113 + $7 + $0.03/lb
Copper revenue, net of royalties12 $2.25/lb - $0.50/lb - $100 - $6 - $0.03/lb
Gold all-in sustaining costs4
WTI crude oil price13 $55/bbl +/- $10/bbl n/a +/- $9 +/- $3/oz
Australian dollar exchange rate 0.75 : 1 +/- 10% n/a +/- $15 +/- $6/oz
Canadian dollar exchange rate 1.32 : 1 +/- 10% n/a +/- $16 +/- $6/oz
Copper all-in sustaining costs7
WTI crude oil price13 $55/bbl +/- $10/bbl n/a +/- $3 +/- $0.01/lb
Chilean peso exchange rate 675 : 1 +/- 10% n/a +/- $3 +/- $0.01/lb
ENDNOTE 1
"Adjusted net earnings" and "adjusted net earnings per share" are non -GAAP financial performance measures. Adjusted net
earnings excludes the following from net earnings: certain impairment charges (reversals) related to intangibles, goodwill,
property, plant and equipment, and investments; gains (losses) and other one-time costs relating to acquisitions or dispositions:
foreign currency translation gains (losses); significant tax adjustments not related to current period earnings ; unrealized gains
(losses) on non-hedge derivative instruments; and the tax effect and non-controlling interest of these items. The Company uses
this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist
with the planning and forecasting of future operating results. Barrick believes that adjusted net earnings is a useful me asure of
our performance because these adjusting items do not reflect the underlying operating performance of our core mining
business and are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per
share are intended to provide additional information only and do not have any standardized meaning under IFRS and may not
be comparable to similar measures of performance presented by other companies. They should not be considered in isolation
or as a substitute for measures of performance prepared in accordance with IFRS. Further details on these non -GAAP measures
are provided in the MD&A accompanying Barrick's financial statements filed from time to time on SEDAR at www.sedar.co m and
on EDGAR at www.sec.gov.
Reconciliation of Net Earnings to Net Earnings per Share, Adjusted Net Earnings and Adjusted Net Earnings per Share
($ millions, except per share amounts in dollars) For the three months ended June 30 For the six months ended June 30
2017 2016 2017 2016
Net earnings (loss) attributable to equity holders of the Company $ 1,084 $ 138 $ 1,763 $ 55
Impairment charges (reversals) related to intangibles, goodwill, property, plant and
equipment, and investments1 (5) 4 (1,130) 5
Acquisition/disposition (gains)/losses2 (880) (11) (877) (2)
Foreign currency translation (gains)/losses 32 23 35 162
Significant tax adjustments 12 3 9 54
Other expense adjustments 21 6 27 74
Unrealized gains on non-hedge derivative instruments - (5) 3 (11)
Tax effect and non-controlling interest3 (3) - 593 (52)
Adjusted net earnings $ 261 $ 158 $ 423 $ 285
Net earnings (loss) per share4 0.93 0.12 1.51 0.05
Adjusted net earnings per share4 0.22 0.14 0.36 0.24
1 Net impairment reversals for six month period ended June 30, 2017 primarily relate to impairment reversals at the Cerro Casale project upon reclassification of the project’s
net assets as held-for-sale as at March 31, 2017.
2 Disposition gains for the three and six month periods ended June 30, 2017 primarily relates to the sale of a 50% interest in the Veladero mine and the gain related to the
sale of a 25% interest in the Cerro Casale project.
3 Tax effect and non -controlling interest for the six month period ended June 30, 2017 primarily relates to the impairment reversals at the Cerro Casale project discussed
above.
4 Calculated using weighted average number of shares outstanding under the basic method of earnings per share.